FRANKENMUTH Mutual Insurance Rtd 'Api' by S&P

Business Wire, Oct 7, 1998

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/7/98-- Standard & Poor's today assigned its single-'Api' insurer financial strength rating to FRANKENMUTH Mutual Insurance Co.

FRANKENMUTH Mutual Insurance Co. is licensed in 15 states; and primarily operates in Michigan and Wisconsin. It writes principally workers' compensation, commercial multiple peril, and homeowners multiple peril. The company commenced operations in 1922.

The following factors were incorporated in the rating of single-'Api':

-- Capitalization, as measured by Standard & Poor's capital adequacy

model, is over 300%, which is extremely strong; -- Liquidity is satisfactory, as indicated by Standard & Poor's

liquidity ratio of 116.8%; and -- At 9.2%, weighted average return on revenue is lower than that of

insurers at higher rating levels.

`Pi' ratings, denoted with a pi subscript, are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. They do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a 'pi' subscript. Pi ratings are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a pi subscript are not subject to potential CreditWatch listings.

Ratings with a pi subscript generally are not modified with 'plus' or 'minus' designations. However, such designations may be assigned when the insurer's financial strength rating is constrained by sovereign risk or the credit quality of a parent company or affiliated group, Standard & Poor's said. ---CreditWire.